Analyst Releases Supporting Documents After Ascertaining That CNInsure (CISG) Is Overstating Profits

December 3, 2010 9:23 AM EST
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OLP Global, which stated in a research report yesterday that CNInsure, Inc. (Nasdaq: CISG) is overstating profits, has released core supporting documents behind their report.

Shares of CNInsure fell 17 percent yesterday following the original report from OLP Global analyst Adele Mao, which stated that equity incentives are likely unaccounted for at CNInsure, which is overstating profits.

Mao said, "We invite interested investors and analysts to review the details and judge for themselves whether CISG’s so-called "scorecard" system is in fact an equity-based compensation plan. We believe the commission paid in the form of equity incentive shares has not been reflected in CISG's financial statements, leading to overstated profits."

Commenting on this morning's press release disclosing insider share purchase by the CEO and CFO, Mao notes "What CISG did not disclose is that two members of senior management (Mr. Jin, COO/CIO/Head of Life Insurance and Mr. Li, Founder/Vice President) have sold shares three times each since November 24. Based on paper Form 144 filings from SEC to date, Mr. Jin and Mr. Li collectively sold 11,000 shares for total proceeds of $243K (at average selling price of $22.05 per share)."

Links to Core Supporting Documents
Document #1:
http://webcache.googleusercontent.com/search?q=cache:BP_HTLHuXi8J:61.235.114.121/

Document #2:
http://webcache.googleusercontent.com/search?q=cache:WrjSUq4h80oJ:61.235.114.121/%E4%B8%8B%E8%BD%BD%E6%96%87%E4%BB
%B6/%E5%9F%B9%E8%AE%AD%E7%AE%A1%E7%90%86/%E5%88%9B%E4%B8%9A%E8%AF%B4%E6%98%8E%E4%BC%9A/%E5%8
8%9B%E8%AF%B4%E4%BC%9A%E8%AF%BE%E4%BB%B6/%E6%B3%9B%E5%8D%8Ec%E7%B1%BB


Document #3:
http://webcache.googleusercontent.com/search?q=cache:7gIATAJypakJ:61.235.114.121/%E4%B8%8B%E8%BD%BD

Document #4:
http://webcache.googleusercontent.com/search?q=cache:7gIATAJypakJ:61.235.114.121/%E4%B8%8B%E8%BD%BD

Document #5:
http://webcache.googleusercontent.com/search?q=cache:5BzlCX4QHqIJ:61.235.114.121/%E4%B8%8B

Document #6: (the following link no longer works)
http://webcache.googleusercontent.com/search?q=cache:faQxR5HOAlEJ


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